www.shaproperty.com

Sep 26, 2007

HDB flat prices in Fernvale rose too rapidly

I REFER to the article, 'HDB launches sixth build-to-order project in Fernvale' (ST, Sept 21).

The HDB's pricing policy recently has increased the prices of new flats, and may lead to Singaporeans having to incur higher mortgage liabilities.

This may result in lesser CPF funds for retirement, more mortgages in arrears, defaults, etc.

For example, the prices of four-room flats in the HDB's latest build-to-order project (Coral Spring) in Fernvale are between $188,000 and $252,000, compared to Fernvale Vista Phase 2 ($145,000 to $200,000) in May, and Fernvale Court ($138,000 to $177,000) two years ago.

Based on the average prices of the three projects, which are in the same location, the increase is about 40 per cent from two years ago, and 28 per cent from just four months ago.

On an annual basis, the increase is 18 per cent per annum over the last two years, and 75 per cent per annum over just the last four months.

Why does the HDB have to increase its prices by so much so rapidly?

Leong Sze Hian